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Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified

DTE Energy Holding Company

(

DTE

) as a "barbarian at the gate" (strong stocks crossing above resistance with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified DTE Energy Holding Company as such a stock due to the following factors:

  • DTE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $81.9 million.
  • DTE has traded 406,199 shares today.
  • DTE traded in a range 375.1% of the normal price range with a price range of $3.40.
  • DTE traded above its daily resistance level (quality: 27 days, meaning that the stock is crossing a resistance level set by the last 27 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).

Stocks matching the 'Barbarian at the Gate' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying positive price action. In this case, the stock crossed an important inflection point; namely, 'resistance' while at the same time the range of the stock's movement in price is more than twice its normal size. This large range foreshadows a possible continuation as the stock moves higher.

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More details on DTE:

TheStreet Recommends

DTE Energy Company, together with its subsidiaries, operates as an energy company. The company's Electric segment engages in the generation, purchase, distribution, and sale of electricity to approximately 2.1 million residential, commercial, and industrial customers in southeastern Michigan. The stock currently has a dividend yield of 4%. DTE has a PE ratio of 17.1. Currently there is 1 analyst that rates DTE Energy Holding Company a buy, no analysts rate it a sell, and 9 rate it a hold.

The average volume for DTE Energy Holding Company has been 1.1 million shares per day over the past 30 days. DTE Energy Holding has a market cap of $11.7 billion and is part of the utilities sector and utilities industry. The stock has a beta of 0.34 and a short float of 1.5% with 2.20 days to cover. Shares are up 9.2% year-to-date as of the close of trading on Thursday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates DTE Energy Holding Company as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:

  • DTE's revenue growth has slightly outpaced the industry average of 0.1%. Since the same quarter one year prior, revenues slightly increased by 9.0%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • DTE ENERGY CO's earnings per share declined by 13.7% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, DTE ENERGY CO reported lower earnings of $3.87 versus $4.18 in the prior year. This year, the market expects an improvement in earnings ($4.03 versus $3.87).
  • Even though the current debt-to-equity ratio is 1.02, it is still below the industry average, suggesting that this level of debt is acceptable within the Multi-Utilities industry. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 0.48 is very low and demonstrates very weak liquidity.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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